Deeplinks Blog posts about Patent Trolls

The Supreme Court took a major step in cutting back on abstract software patents last June when it issued its landmark ruling in Alice Corp. v. CLS Bank. In essence, the court said that abstract ideas implemented by conventional computer process are not eligible for patent protection. Since then, the PTO has attempted to write guidance applying the law to pending patent applications. Unfortunately, the PTO has floundered and continues to grant far too many invalid patents. This week EFF filed public comments asking the Office to do more to ensure its examiners apply the new law.

A few years back, we challenged a patent belonging to ArrivalStar, the notorious patent troll that was sending demand letters to municipal authorities across the country for offering real-time updates on bus and train arrival times. We got many of ArrivalStar’s claims invalidated (or at least significantly narrowed) by the Patent Office—but that was just for one patent.

The worst patent trolls bring weak cases and use the cost of defending a lawsuit as leverage to force settlements. A company called Joao Bock Transaction Systems LLC (“JBTS”) has elevated this business model to an art form. The company is associated with patent attorney and prolific “inventor” Raymond Joao. Apparently not content with drafting patents on behalf of others, Joao began to file his own patents. His companies have since launched dozens of lawsuits against technology ranging from streaming video to financial transactions. Of course, if you talk to the people who actually pioneered real-world technology, they’ve never heard of Joao or his companies. From all indications, Joao is solely in business of filing paper patents and forming companies to sue.

Patent trolls are still at it. A new report from Unified Patents, found that 449 patent cases were filed in district court in January 2015—a 36% increase over January 2014. The growth was fueled largely by patent trolls, who filed more than half of the month’s cases. This marks the second month in a row where we have seen an increase in patent litigation from the same period a year ago.